When you say that a price is too high to clear the market you usually mean what?

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1211566

2026-05-16 15:50

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When a price is too high to clear the market, it means that the quantity supplied exceeds the quantity demanded at that price level. As a result, there will be unsold goods or services, leading to excess supply. This situation often prompts sellers to lower prices to stimulate demand and reach a market equilibrium where supply equals demand.

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